JPMorgan Chase 'Positive' on Private Equity in 2025

The video discusses the outlook for private equity in 2025, highlighting increased exit activity, cheap valuations in Europe, and the role of activists. It explores the impact of fiscal policies in Europe, comparing large and midcap PE players, and the potential for growth. The discussion includes tech investments, lessons from North Volt, and the defense sector's ESG concerns. It concludes with insights into long-term investment strategies in private equity.

What are the three areas of focus for private equity in 2025?

• Increased government intervention, reduced exit activity, and high valuations

• Increased exit activity, cheap valuations in Europe, and activist-driven deals

• Focus on technology, reduced activism, and high valuations

• High valuations, reduced exit activity, and government regulations

How are midcap private equity players differentiating themselves in the market?

• By focusing on large global deals

• By avoiding technology investments

• By specializing in local sectors like tax, software, and services

• By partnering exclusively with large cap players

What is the current valuation gap between Europe and the US?

• 10 turns

• 3 turns

• 5 turns

• 15 turns

What lesson did the private equity industry learn from tech investments like North Volt?

• Diversification and risk management are crucial

• Large cap players should focus on tech investments

• Midcap players should avoid tech investments

• All new technologies are guaranteed to succeed

Why is the defense sector becoming attractive for private equity investments?

• Due to high valuations and high risk

• Due to low valuations and lack of government support

• Due to attractive valuations and government support

• Due to high valuations and lack of government support

How are private equity funds adapting their investment strategies for the long term?

• By raising more long-term funds and partnering with minority investors

• By focusing only on public markets

• By focusing solely on short-term returns

• By avoiding infrastructure investments

What trend is being observed in the management of trophy assets by private equity?

• Selling them quickly for short-term gains

• Developing them longer with the help of minority investors

• Avoiding investment in trophy assets

• Listing them immediately in public markets